FAC Explorer

Finding 498318 (2023-001)

Significant Deficiency
Requirement
P
Questioned Costs
$1
Year
2023
Accepted
2024-09-25
Audit: 321062
Organization: Independent Living Place, Inc. (TX)
Auditor: M Group LLP

AI Summary

  • Core Issue: The Project failed to make 12 required monthly deposits totaling $5,964 into the replacement reserve account, violating HUD regulations.
  • Impacted Requirements: Monthly deposits are mandated by the HUD regulatory agreement, and any withdrawals need prior approval from HUD.
  • Recommended Follow-Up: Ensure the Project maintains compliance by monitoring future deposits and confirming the recent $2,450 deposit into the replacement reserve account.

Finding Text

Finding #2023-001: Section 202 Supportive Housing for the Disabled, Assistance Listing 14.157 and Section 8 Housing Assistance Payments Program, Assistance Listing 14.195 Type of Finding: Significant Deficiency Condition: The Project did not make 12 monthly deposit during the audit period ($490 payments for 5 months and $502 payments for 7 months) totaling $5,964 to the replacement reserve account. Criteria: The HUD regulatory agreement requires monthly deposits into the replacement reserve account and requires HUD’s approval for any withdrawals from the replacement reserve. Questioned cost: $2,450 Effect: Replacement reserve account is underfunded and the Project is in violation of its Regulatory Agreement. Cause: Lack of operating funds available Repeat Finding: Yes Recommendation: We recommend the Project deposit $2,450 into the replacement reserve account. Management’s View: Management is in agreement with the finding. The corrective action plan is included in the audit report. Auditor’s Comment: On August 7, 2024, the Project deposited $2,450 into the replacement reserve account.

Corrective Action Plan

CORRECTIVE ACTION PLAN Name and Number of the Project: INDEPENDENT LIVING PLACE, INC. No. 115-EH115 Audit Firm: M Group, LLP Audit Period: The year ended September 30, 2023 Compliance Review A. COMMENTS ON FINDINGS AND RECOMMENDATIONS We concur with the findings and recommendations of our auditors regarding our noncompliance as cited in the accompanying Schedule of Findings and Questioned Costs. ACTIONS TAKEN FINDING 1: Section 202 Supportive Housing for the Disabled, Assistance Listing 14.157 and Section 8 Housing Assistance Payments Program, Assistance Listing 14.195 CORRECTIVE ACTION COMPLETED: On August 7, 2024, the Project deposited $2,450 into the replacement reserve account. We have prepared the corrective action plan as required by the standards applicable to financial statements contained in Government Auditing Standards and by the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principals, and Audit Requirements for Federal Awards. Any questions regarding the above corrective action plan should be directed to Mr. Stewart Grounds, Chief Financial Officer of Arnold-Grounds Apartment Management & Affordable Housing Specialists, LLC.

Categories

Questioned Costs HUD Housing Programs Significant Deficiency

Other Findings in this Audit

  • 498319 2023-002
    Material Weakness
  • 498320 2023-003
    Material Weakness
  • 498321 2023-001
    Significant Deficiency
  • 498322 2023-002
    Material Weakness
  • 1074760 2023-001
    Significant Deficiency
  • 1074761 2023-002
    Material Weakness
  • 1074762 2023-003
    Material Weakness
  • 1074763 2023-001
    Significant Deficiency
  • 1074764 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $890,044
14.195 Section 8 Housing Assistance Payments Program $276,832